Digital asset investment firm Grayscale is taking action to dissolve the XRP Trust days after it announced that its XRP positions were liquidated from the Digital Large Cap Fund.
Grayscale cited the Securities and Exchange Commission’s decision to sue Ripple last month in a press release released Wednesday, where he argued that the digital asset XRP is a security under US law.
“In response to the SEC’s action, some key market participants announced measures, including the removal of XRP from major digital asset trading platforms, and it was concluded by Grayscale that it will become increasingly difficult for US investors, including Trust. Convert XRP to US dollars and so continue with Trust’s transactions. ”
“In connection with the liquidation, Grayscale liquidated the XRP trust. It plans to distribute its net cash proceeds to Trust shareholders after deducting expenses and providing appropriate reserves and subject to any applicable withholding tax.
Distance to XRP
As previously reported, numerous crypto companies looking to the market have moved to distance themselves from XRP. The impending SEC dispute sparked an investor lawsuit from Tetragon Financial Group, which invested in Ripple’s Series C funding round.
Still, regulators in countries outside of the US have so far taken a different approach in their decisions about the status of XRP. For example, Japan thinks that XRP is a cryptocurrency under its laws on payment services.